Logistics & Industrial Occupier Market Outlook 2024

Figure 22. Select Warehouse Automation Options - Cost v Timeframe to Implement

Automated storage and retrieval systems (AS/RS)

Goods-to-person (GTP) technologies

Cost

Automatic guided vehicles (AGVs)

Palletisers

Automatic sorters

Techonology (predictive analytics, artificial intelligence, machine learning, advanced digitalisation)

Autonomous mobile robots (AMRs)

Robotic picking arms

Drones

Conveyor belts

Warehouse workflows

Timeframe to implement

Source: Cushman & Wakefield

Size of bubble = occupier interest levels

Figure 23. Warehouse Automation Adoption by Sector

Sector

Automation System Adopted

Reason

E-commerce and Retail

Automated storage and retrieval systems (AS/RS), conveyor systems, robotics (pick and place robots), automated guided vehicles (AGVs), and warehouse management systems (WMS). AGVs, AS/RS, warehouse execution systems (WES), and robotic palletisers

The high volume of small orders increases the need for fast delivery and managing returns efficiently.

What does this mean for warehouse demand? As the cost to implement reduces further, automation adoption will become even more pronounced, particularly in sub-10,000 sqm facilities where, historically, the return on investment has been too low to make the investment unfeasible. Greenfield markets and those with pre-commitment availability will be the beneficiaries of further investment in automation . When businesses decide to proceed with automation, particularly fixed automation solutions, it generally results in the need for a new facility so that it can be designed to the bespoke needs of that particular occupier.

Adopting automation in existing facilities is more challenging, given the age profile of stock and limitations in the current design . As a result, the options to implement automation in these locations are largely geared towards mobile or semi-mobile solutions. However, continued strong occupier demand in these locations will drive the need for redevelopment or refurbishment of existing stock, supporting greater take-up into the future. Long term, the drive for operational efficiencies through automation will support warehouse demand over the next decade .

Logistics and Third-Party Logistics (3PL)

Handling diverse inventory, optimising storage space, and improving throughput.

Manufacturing

Conveyor systems, automated sorting systems, AGVs, and WMS.

Just-in-time inventory management, efficient material handling, and reducing production downtime. Maintaining product integrity, managing perishable goods, and ensuring compliance with regulatory standards. Strict regulatory requirements underpin the need for precise inventory management and handling of sensitive products.

Food and Beverage

Temperature-controlled AS/RS, conveyor systems, AGVs, and robotic palletisers.

Pharmaceuticals and Healthcare

Automated storage solutions, robotics, WMS, and track and trace systems

31 | CUSHMAN & WAKEFIELD | LOGISTICS & INDUSTRIAL

OCCUPIER MARKET 2024 OUTLOOK | 32